Re 0.80 Dividend, 10:1 Split: Defence PSU Bags Rs 48 Bn Orders, Hold For Fresh TP Rs 290: PL

Leading brokerage firm Prabhudas Lilladher has recommended hold call to large cap aerospace & defence sector company, Bharat Electronics Ltd (BEL) shares with target price of Rs 290 per share. Current market price of Bharat Electronics share on BSE is Rs 307.90 per share with intraday gain of 0.56%. Bharat Electronics Ltd share soared 66% year-to-date and rose 144% in last 1-year.

BEL has declared a final dividend of Rs 0.80/- per equity share of Re 1/- each for FY 2023-24 and yet to announce the record date for the same. The defence PSU has a market capitalisation of Rs 2,25,068.09 crore. Check key details below:

PL Recommends Hold Rating: According to Amit Anwani at Prabhudas Lilladher, "With the robust order intake pace, company is well on its way to achieve ~Rs250bn order intake expectation set for FY25. Furthermore, we remain positive on BEL's long-term growth given their diversification into non-defence verticals and their focus on exports. The stock is currently trading at a PE of 50.4x/42.1x on the earnings of FY25/26E. We currently have a 'Hold' rating with tp of Rs290."

BEL received order worth Rs31.7bn from Armoured Vehicles Nigam ltd. BEL also secured miscellaneous small orders valued at Rs4.8bn to supply Doppler Weather Radar, Classroom jammers, spares and services etc. YTD company has bagged orders worth Rs48bn, added Prabhudas Lilladher's Amit Anwani.

BEL Dividend: The Board of Directors of the Defence PSU on May 27, 2024 recommended a final dividend of Re 0.80 /- per equity share (80%) of Re 1/- each fully paid-up for the financial year 2023-24 subject to approval by the shareholders in the next Annual General Meeting of the Company.

Bharat Electronics Share Performance: Its PE stood at 51 and ROE at 25.00. Bharat Electronics shares offered return of 66% in last 6-months, zoomed 144% in last 1-year, and gave return of 302% in last 2-years. BEL shares offered return of 401% in last 3-years. In last 5-years, BEL stock surged 734%. The 52-week high price of BEL shares on BSE were quoting Rs 323.00 per share (as on 03/06/2024) and 52-week low price is Rs 116.45 per share (as on 08/06/2023).

Bharat Electronics Q4: BEL announced a 30% year-on-year surge in its consolidated net profit to Rs 1,797 crore for the quarter ended March 2024 as against the net profit of Rs 1382 crore declared in the corresponding quarter of last year. Revenue from operations of BEL zoomed 32% to Rs 8,564 crore for Q4 FY 2024 as against Rs 6479.12 crore for the corresponding quarter of last year.
For full FY24, BEL announced its profit after tax (PAT) at Rs 3,984.52 crore, up 33.5% as against the PAT of Rs 2,984.42 crore registered for FY23.

BEL Stock Split History: The defence stock split the face value of its shares once since March 16, 2017. BEL last split the face value of its shares from Rs 10 to Re 1 in 2017.BELshare traded an ex-split as on March 16, 2017.

BEL Bonus History: BEL's last bonus issue was declared in 2022 in the ratio of 2:1. BEL shares hit ex-bonus on September 15, 2022. Prior to this, BEL announced bonus shares in 2017 in the proportion of 1:10 and in 2015 in the ratio of 2:1 proportion.

About: Established in 1954, BEL engages in manufacturing of specialised electronic equipment requirements of the Indian Defence Services. BEL produces a wide range of equipment for areas such as defence communication, radars, naval systems, c4i systems, weapon systems, homeland security, telecom & broadcast systems, electronic warfare, tank electronics, electro-optics, professional electronic components and solar photovoltaic systems, according to its official website.

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